U.S. Labor Force: One Foot in the Third World

Chronicles Magazine ^ | Tuesday, June 07, 2005 | Paul Craig Roberts

[Destro]

How about a figure we can all agree with? The shocking decline in overseas investments here?

[Asclepius]

Tell it to China, which you claim "fails to realize" that manufactured goods are a cash loser.

China in ten years will be where Japan is now, quite stagnant except in their tech and financial sectors. Their stock market is already in a free fall or do you follow the news at all? India will probably prosper bescause India understand the new economy: they are investing more in services and high tech than heavy industry, a proven loser.

[Paul Ross]

Let me change the line of questioning as I appear to have you flummoxed.

Really, you're the one who has no industrial history knowledge, and no one else appears to see any signs of your flummoxing ANYONE here.

If an "industrial base" is so horribly vulnerable that it requires the massive subsidy of onerous, consumer-punishing protectionist legislation (as you yourself argue), or the subsidy of slave labour in the third world to even make it profitable at all (as you yourself argue), does that not suggest to you, ahem, a hiccough in your line of reasoning?

Your reasoning is the one that is circular. The Chinese slave labor is a deliberate contrivance MAINTAINED DELIBERATELY as policy by China's Communist party. It serves them in multiple ways. If you use your reasoning, I think you will see what those are.

Anyways, it becomes clear with your emphasis in this line of argument that your fundamental misunderstanding of economics is the common libertine failure, i.e., that you fail to comprehend that YOUR POLICIES are the ones that " requires the massive subsidy"...can you say Ex-IM Bank and OPIC subsidies? Can you say Chinese currency manipulation of the rmibi-dollar ratio? And also,

"of onerous, consumer-punishing protectionist legislation "...can you say CURRENCY DEBAUCHMENT?

Four years of clear correlation. This is a "tax" a "massive subsidy" and "onerous" and ultimately "consumer-punishing"...to use all your loaded phrases. They apply much more aptly to your policies than a tariff. Tariffs, properly structured, can build the nation up. Your policies tear it down. Note, China still has kept all its tariffs in place, despite its WTO obligations to end them. That is what your policies of outsourcing lead to directly. China is at war with the U.S. and we are simply to stupid as a country to realize it. And China's communist rulers have been delighted beyond belief to find those within the U.S. who continue to spout rationalizing apologetics...economics theories which abet their continued warfare, lest the suckers should ever wake up.

[Nonstatist]

How about a figure we can all agree with?

Look at #96, and then tell me why none of that matters.

[jb6]

No, those who are on unemployment are counted as unemployed, that's the only concrete figures you get. How do you know that Joe Snuff sitting at home not collecting anything is looking for work?

[jb6]

Not to mention that 1. we had since 1939 to retool and we did that under "Lend Lease" and 2. we had a lot of industry to retool from.

[hershey]

Is anyone in the admin. paying attention?

[Paul Ross]

They are accumulating our dollars. The only thing they can do to make this "bill" come due, is they can stop accumulating our dollars, and start spending them.

A'hem. They have accumulated, as you say, a $600 billion stash. So why haven't they spent them YET??? What are they WAITING for? And aren't you a little concerned that when the Chinese Premier comes to the U.S. to lecture us about trade competition (they comfortably behind their tariff walls, and government-controlled communist economy) there is a lack of media coverage on the hypocrisy? And just what did he say that we could possibly interest them in to spend those dollars? Our advanced defense technology. That's it. They want us to let go of the last thing keeping us secure. Surprise.

[hershey]

General Motors is cutting 25,000 American workers' jobs and building more plants in Mexico and China. I guess we're supposed to get busy inventing something quick to sustain us until it's outsourced. Cellphones and HDTV aren't enough.

[Nonstatist]

How do you know that Joe Snuff sitting at home not collecting anything is looking for work?

Well, if he isn't, then he deserves the non-recognition that he gets.

[jb6]

Australia, Taiwan and S.Korea are not first world economies? Boy they'll be surprised.

[jb6]

Far more than half of China has a standard of living worse than many third world nations

Yup, and our products are made by that slave labor. How nice. China's comparitive advantage is slave labor and don't for a moment think that they'll give that up.

[Nonstatist]

I missed Australia. Taiwan and S. Korea are 2nd world.

[superiorslots]

Quote: I guess we're supposed to get busy inventing something quick to sustain us until it's outsourced. Cellphones and HDTV aren't enough



All those layed off people should "pull up their bootstraps" as Rush calls it and get some more "skoolin" and get into bio molecular chemistry and nanotechnologoly.

[jb6]

China in ten years will be where Japan is now, quite stagnant except in their tech and financial sectors.

They'll have a fully employed and aging work force making 1st world wages? Hahahaha, tell that to the 600,000,000 working for less then 20 CENTS per hour and the 1,000,000,000 (three times our whole population plus) who live in abject poverty in the country side hoping to get one of those "high-paying" jobs.

[Nonstatist]

China's comparitive advantage is slave labor and don't for a moment think that they'll give that up.

Japan and West Germany (their labor rate in the '50's was much lower than ours) gave it up, so dont be so sure.

[Paul Ross]

Cellphones and HDTV aren't enough.

A'hem. Those are being primarily made in the Pacific Rim...mostly China...as well. No HDTVs are made in the U.S. at all, to my knowledge.

The general rule of thumb nowadays, is that once a new idea comes up from the U.S., it immediately is sent for manufacture to the Pacific Rim, skipping the U.S. as a producer altogether.

That is the main philosophy of smart management now preached. Those managers who cling to U.S. manufacturing preferences are derided as "out-dated".

[hershey]

We'll soon have one Happy Hemisphere, free trade, travel, settle wherever you like...maybe Mexico won't allow that, but no matter. The US will have millions more former Third World residents to educate, feed, clothe, etc.. This migration of unskilled, uneducated, non-English speaking peoples is insane and is overwhelming this country; in fact, we're probably the world's laughingstock. Worst of all, it's totally illegal and rammed down our throats without even a national discussion let alone a vote.

[hershey]

I forgot to mention that G.M. is blaming workers' health insurance costs for their problems. $1500 per car goes to the worker health insurance kitty.

[jb6]

2nd World? So they're in the block of socialist/communist economies run by the Soviet Union? Which is what 2nd World means. First world was the US and its direct NATO allies, 3rd World were the underdeveloped mostly neutral states. If you're referring to economies, S.Korea and Taiwan both have mature manufacturing economies and most of their people have a relatively high standard of living (purchasing power parity) since a dollar doesn't spend the same everywhere.